On October 13, 2006, Solomon N. Darwin, a professor at UC Berkeley, gave a talk on financial reporting. Accounting is a basic social need that began in Mesopotamia with records on clay token. US GAAP has evolved from various sources including: Committee on Accounting Procedures (CAP), Accounting Principles Board (APB), Financial Accounting Principles Board (FASB).
CAP is the first private body to write accounting rules. It has issued 51 accounting research bulletins. APB is appointed by the AICPA. It has issued 31 opinions. FASB has 7 members who are full time. FASB publishes statements of financial accounting standards, interpretations, technical bulletins.
The Sarbanes-Oxley Act of 2002 established the Public Company Accounting Oversight Board (PCAOB) to police the accounting profession. The PCAOB has not authority over registrants, and only have authority over the auditors of registrants.
The Securities and Exchange Commission (SEC) is the final authority on financial reporting by public companies. It consists of five commissioners appointed by the US President, and reports to Congress. SEC requirements for public companies include the following filings: annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statement.
Accounting helps to detect financial crimes like money laundering and illegal investments. Under New Jersey Statutes TITLE 2C – THE NEW JERSEY CODE OF CRIMINAL JUSTICE
Section 2C:21, a person is guilty of a crime of money laundering and illegal investment if the person moves or possesses property known to come from criminal activity. An example, selling counterfeit goods to support terrorist organizations.
It is also a crime to engage in a transaction involving property known to be derived from criminal activity. The conduct requires intent to help or promote the criminal activity. For example, concealing the nature, location, source, ownership or control of the property derived from criminal activity. Another example, avoiding required financial reporting under New Jersey laws.
The New Jersey State Police has a Financial Crimes Investigations Unit (FIU) to enforce the Title 2C Code of Criminal Justice of New Jersey as well as provisions of the Casino Control Act. The FIU works with the New Jersey Deputy Attorney Generals assigned to the Division of Criminal Justice and investigators from the Division of Gaming Enforcement to review the Atlantic City Casino Suspicious Activity Reports, Currency Transaction Reports, participation in the Joint Terrorism Task Force Work Group, to detect financial crimes before they happen or get out of control. One money laundering case investigated involved over 60 million dollars.
When charged with financial crimes, engage an experienced New Jersey criminal defense attorney to decrease sentencing and monetary penalties. Contact the Law Office of Jason Volet at (732) 503-8968 or fill out the form on the right.
